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Chinese "India Out Campaign" failed | Maldives is in India's basket | String of pearls is failing?

Introduction

In recent years, China’s “India‑Out Campaign” in the Maldives, the strategic contest over the “String of Pearls”, and India’s response including the Double Fish Hook Strategy have become central to understanding the evolving balance of power in the Indian Ocean Region (IOR). This post examines:

  • Why the India‑Out campaign ultimately failed

  • How Maldives was never firmly in India’s basket

  • Why the String of Pearls strategy is faltering

  • What India’s strategic responses mean for the future.

1. Origin and Intent of the China‑Backed “India‑Out Campaign”

1.1 Background: 2023 Presidential Election in Maldives

Modi and Maldives president giving shake hand to each other

Mohamed Muizzu ran on a populist “India Out” platform in 2023, promising to remove Indian military and technical presence and pivot towards China. He won with 54% of the vote against the incumbent Solih’s “India‑first” policy (Observer Research Foundation, Wikipedia, Reddit, Wikipedia).

1.2 Goals and Rhetoric

The campaign argued India’s influence threatened sovereignty and pushed for closer economic and strategic ties with China, drawing parallels with former President Yameen’s earlier pro‑Beijing alignment (ISAS).

1.3 China’s Strategic Interests

China saw an opening to expand its investment footprint via Belt & Road projects—especially infrastructure like the Sinamalé Bridge and loans tied to strategic influence (Wikipedia).

2. India‑Out Campaign: Why It Failed

2.1 Misinformation and Backlash

India labelled the campaign as “based on misinformation and false propaganda,” especially around rumors of permanent troop deployments. Public opinion in Maldives remained skeptical (Reddit).

2.2 Economic Reality Check

Within months of Muizzu’s election, Maldives faced severe debt burdens—owing over US $1.3 billion to China and $124 million to India—and reached the brink of economic default (Reuters).

2.3 Strategic U‑Turn

By mid‑2024, Muizzu began softening rhetoric: requesting Indian defense platforms back, renewing hydrography cooperation with India, and ultimately inviting PM Modi to visit in July 2025 (Reddit).

2.4 Modi’s Diplomacy and Financial Aid

In late July 2025, Modi visited the Maldives as the Guest of Honour for its 60th Independence celebrations. He extended a $565 million line of credit, initiated FTA negotiations, and reinforced India’s role as Maldives’ trusted partner (AP News).

3. Maldives: Never in India’s Basket to Begin With

3.1 Historical Ambivalence

Though India helped during the 1988 coup (Operation Cactus), political sentiment in Maldives has often swung between pro‑India and pro‑China factions. Strong historical ties never translated into absolute dependence (Wikipedia).

3.2 Sovereignty and Domestic Nationalism

Many Maldivians viewed Indian military or diplomatic influence with suspicion. Nationalist leaders repeatedly used the “India Out” theme as a political tool to appeal to domestic opinion (ISAS).

3.3 Debt‑Diplomacy Limits

China’s deep involvement in Maldives infrastructure created long‑term debt issues that eventually pushed the nation to recalibrate toward India for liquidity and economic support, undermining the narrative that Maldives was firmly in China’s basket either (Wikipedia, ThePrint, Reddit).

4. String of Pearls: Is It Now Failing?

4.1 Overview of String of Pearls

China’s String of Pearls refers to a network of ports and facilities in Gwadar (Pakistan), Hambantota (Sri Lanka), Sittwe (Myanmar), Chittagong (Bangladesh), Maldives, and Djibouti—all viewed as strategic encirclement of India (Reddit).

4.2 Pushback by Local States

Countries involved—Sri Lanka, Bangladesh, Maldives—have increasingly resisted full subservience to Chinese debt diplomacy. The Hambantota example in Sri Lanka sparked domestic backlash and eventual Chinese loss of equity control (Wikipedia, ThePrint).

4.3 India’s Counter‑Strategy: Double Fish Hook

India’s “Double Fish Hook” maritime strategy—through port development and alliances in Eastern (Andaman & Nicobar to Diego Garcia) and Western Indian Ocean (Oman‑Mauritius‑Seychelles‐Madagascar)—aims to disrupt China’s string-like encirclement (Wikipedia).

4.4 Economic Sustainability Questioned

Many of the Chinese investments have become non‑performing assets, burdened with debt to GDP ratios that Maldives and Sri Lanka cannot sustain. Local discontent over economic sovereignty has made the String of Pearls approach less effective than intended (Wikipedia, ThePrint, Reddit).

5. Current Scenario: India Reasserts Itself

5.1 Diplomatic Thaw

India’s recent diplomacy has pivoted Maldives back into its sphere—not by force, but through lines of credit, debt relief (40% payment reduction), free trade discussions, infrastructure investment, and soft “masala” diplomacy (The Economic Times).

5.2 Strategic Relevance

India’s naval exercises across African and IOR partners highlight its intent to assert regional maritime leadership. Events like joint drills with African nations reinforce India’s stake in pushing back against Chinese influence (ft.com).

5.3 Maldives Pivoting

Muizzu’s government has publicly praised Modi, calling him a “wonderful person,” and appears to be warming toward India amid its economic challenges—marking a reverse of his earlier anti‑India stance (Reddit).

6. Key Takeaways

  • China’s India‑Out Campaign failed because Maldives couldn’t sustain pro‑China rhetoric amid mounting Chinese debt and economic crisis.

  • Maldives was never fully in India’s basket—local politics and sovereign nationalism have always tempered deeper integration.

  • String of Pearls is faltering—debt, political backlash, and emerging alternatives have weakened the effectiveness of China’s encirclement strategy.

  • India’s soft power, financial tools, and maritime strategy are making it the more resilient partner in the Indian Ocean region.

7. Implications for the Future

7.1 Geopolitical Lessons

  • Small island states like Maldives have agency—they pivot only as far as economics and sovereignty permit.

  • Big‑power rivalry creates openings, but domestic costs often curtail long‑term alignment.

7.2 For India

  • Investing in renewable infrastructure, trade, capacity building, and security partnerships (e.g. hydrography, surveillance) builds durable influence.

  • Combining diplomacy, credit lines, and regional security frameworks counters China without direct confrontation.

7.3 For China

  • Backlash against heavy debt diplomacy and sovereignty infringements suggests limitations to its String of Pearls model.

  • Overreliance on loan‑driven influence raises reputational risks—especially when debt becomes unsustainable.

Conclusion

The Maldives story is instructive: China’s “India‑Out” gambit backfired, and the nation never truly belonged in India’s strategic control either. Meanwhile, String of Pearls is unraveling under the weight of debt, political pushback, and India’s counter‑strategies. Today, India holds the upper hand through economic support, soft diplomacy, regional influence, and being seen as a legitimate partner—not a hegemonic presence.


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Location: Hyderabad, Telangana, India

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